Pomerantz Law Firm Announces the Filing of a Class Action Against Nutex Health Inc. and Certain Officers – NUTX

Core Viewpoint - A class action lawsuit has been filed against Nutex Health Inc. and certain officers for alleged violations of federal securities laws during the Class Period from August 8, 2024, to August 14, 2025, seeking damages for affected investors [1][2]. Company Overview - Nutex Health Inc. is a physician-led healthcare services company that operates through three divisions: a hospital division with 24 facilities across 11 states, a population health management division, and real estate [4]. - The company primarily operates as an out-of-network provider, generating over 90% of its net patient service revenue from third-party payors, including commercial insurance and workers' compensation [4]. Legislative Context - The No Surprises Act (NSA), effective January 1, 2022, was enacted to prevent surprise out-of-network billing, requiring private health plans to cover out-of-network claims at in-network cost-sharing rates [6]. - The NSA established an independent dispute resolution (IDR) process for determining out-of-network payment amounts when negotiations fail [7]. Financial Impact - Following the implementation of the NSA, Nutex's average payment from insurers for emergency services declined by approximately 30%, with a 37% reduction for physician services reported in March 2023 [8]. - In 2024, Nutex's total revenue increased by $232.3 million to $479.9 million, with the arbitration process contributing approximately $169.7 million to this revenue increase [9]. Internal Control Issues - Nutex has acknowledged material weaknesses in its internal controls over financial reporting, including ineffective design and implementation of controls related to financial processes [9]. - The company has stated it is in the process of remediating these weaknesses [9]. Allegations and Lawsuits - The lawsuit alleges that Nutex made materially false and misleading statements regarding its business operations and financial prospects, including claims about the sustainability of revenues from its engagement with HaloMD in the IDR process [9]. - Blue Orca Capital's report accused HaloMD of engaging in fraudulent schemes to inflate payments from insurance companies, which could impact Nutex's financial stability [10][11]. Stock Price Reaction - Following the publication of the Blue Orca Report, Nutex's stock price fell by $11.18 per share (10.05%) on July 22, 2025, and further declined by $18.22 per share (16.39%) after the company announced a delay in filing its Form 10-Q on August 15, 2025 [11][13]. Recent Developments - On August 21, 2025, Nutex filed a Current Report with the SEC indicating that certain financial statements would need to be restated due to improper treatment of non-cash obligations [14].